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Why Has Andreessen Horowitz Raised $2.7B in 3 Years? // ben's blog


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This is older post, I know, but I've been thinking a lot about the role of VC and the approached outlined here just makes so much sense. How many VCs now approach their investments this way? Who should who isn't? What else should they do?

"As founding CEO, I remember being quite excited to meet our financial backers and talk about how we could partner to build a great company. That excitement took a sharp downhill turn when one of the top partners said to me, in front of my co-founders, “When are you going to get a real CEO?”

I was completely stunned—the comment knocked the wind out of me. Our largest investor had basically called me a fake CEO in front of my team.

...

Marc and I share a simple belief that became the basis for our new venture capital firm: in general, founding CEOs perform better than professional CEOs over the long term, and a venture capital firm that enables founding CEOs to succeed would help build the best companies and yield superior investment returns."

Thanks for posting Christina. I remember reading the piece when it came out earlier this year. It calms that lurking sense of insecurity with a reminder why it's actually a strength.

Not many share their belief. They are unusual among their peers.

Almost no VC starts with the given that founding CEO is best at all times.

Why would they start with a belief that limits their future options to always do what they believe is best for the business?

I'm not sure I agree that founders are always the best CEO's, but I do believe that they have the right to grow into it if they can.

More importantly, I think VC should be providing a support system to their investments in order to help said inventiveness be successful. It makes so much sense to provide PR, marketing, design and technical support to the companies when they are tiny so they can grow. I don't get why they don't all do it.

And if you are a red hot startup, why would you go with someone who can only offer money?

Every major VC has connections.

That's why the number of red hot startups that only have a16z investment is small.

Why they don't all take a16z's approach is likely a matter of focus and philosophy.

Every firm has its specialties.

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